Severance Package

Severance Package
A bundle of pay and benefits offered to an employee upon being laid off from a company. The receipt of a severance package is contingent upon signing a severance agreement. The amount of money received is usually based on the length of employment prior to termination, and may include payment for unused vacation and sick days, and unreimbursed business expenses. Other continued benefits that may be offered or negotiated include life insurance, disability insurance and the use of company property, such as a laptop, cell phone, personal digital assistant (PDA) or vehicle. Companies may also offer outplacement assistance, to help the former employee find a new job.

Your employee handbook should include information on your company's severance package policy. Keep in mind, however, that the handbook may be out of date, and that severance packages are negotiable. Companies are not required to offer a severance package, and in fact may not be able to offer one if they are letting employees go because they are in major financial trouble.

Accepting a severance package may make you ineligible to file a wrongful termination suit or collect unemployment insurance. As well, the severance agreement may include a noncompete clause, which could interfere with your ability to find a new job. Before accepting any severance package, read the severance agreement carefully and consult a lawyer if necessary.

Investment dictionary. . 2012.

Look at other dictionaries:

  • severance package — ➔ package1 * * * severance package UK US noun [C] HR ► the pay and other advantages that an employee receives when their employment is ended by the management: »The company is offering voluntary severance packages …   Financial and business terms

  • Severance package — A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee s remaining regular pay, it may include some of the following:* An additional payment based on months of service *… …   Wikipedia

  • Severance — may refer to:*Severance package, pay and benefits when an employee leaves a firm *Severance (real estate), the act of separating a fixture (personal property attached to real property) from a real property, thus converting it back to a personal… …   Wikipedia

  • package — ▪ I. package pack‧age 1 [ˈpækɪdʒ] noun [countable] 1. TRANSPORT an amount of something or a number of things, packed together and wrapped up ready to be sent somewhere ; = PARCEL: • The company delivers 300,000 packages overnight …   Financial and business terms

  • package — {{Roman}}I.{{/Roman}} noun 1 (esp. AmE) something wrapped in paper, etc. ⇨ See also ↑parcel ADJECTIVE ▪ big, bulky, compact, neat, small ▪ wrapped ▪ …   Collocations dictionary

  • severance — sev|er|ance [ˈsevərəns] n [U] formal 1.) when you end your relationship or connection with another person, organization, country etc, especially because of a disagreement severance of ▪ the severance of diplomatic ties between the two countries 2 …   Dictionary of contemporary English

  • severance — noun Severance is used before these nouns: ↑package, ↑pay, ↑payment, ↑salary …   Collocations dictionary

  • take the package (to) —  Agree to severance benefits being offered by a company …   American business jargon

  • Wong, et al. vs. San Francisco Board of Education, et al. — Wong, et al. vs. San Francisco Board of Education was a lawsuit in the U.S. state of California that asked the San Francisco Board of Education to void San Francisco public schools superintendent Arlene Ackerman s new contract.The lawsuit was… …   Wikipedia

  • Sirius XM Radio — Infobox Company name = Sirius XM Radio, Inc. logo = type = Public (NASDAQ|SIRI) foundation = XM 1988 (as American Mobile Radio Corporation) Sirius May 17, 1990 (formation of Sirius as Satellite CD Radio, Inc.) Sirius XM July 29, 2008 (acquisition …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.